Tag: arbitrage
Every home purchase is 100% financed
Although many home-buyers do not realize it every home they buy has been bought with 100% financing. How can that be you may ask? The last home I bought I put 20% down. It may be true that you took an 80% mortgage and used your own funds for a 20% down payment but what [...]
Posted: October 4th, 2008 under Home Purchase, Mortgage Qualification, Personal Finance.
Tags: arbitrage, down payment, net cost of borrowing, return on investment
Comments: 1
Borrowing out of necessity or opportunity
In his book “Borrow Smart Retire Rich” Todd Ballenger discusses the concept of borrowing money out of opportunity versus necessity and at the same time does a nice job of describing financial arbitrage: Most of us have borrowed out of necessity for houses, cars, or other purchases. Let’s say you borrow money from a local [...]
Posted: October 4th, 2008 under Personal Finance.
Tags: arbitrage, borrowing, financial arbitrage, necessity, opportunity
Comments: 1